Chesapeake Energy seeks to spinoff, sale of unit

Chesapeake Energy Corporation
CHK, -0.49%
the second-largest producer of natural gas in the U.S., said Monday it is pursuing strategic alternatives for its oilfield services division, Chesapeake Oilfield Services, including a potential spin-off to Chesapeake shareholders or an outright sale.

COS had a revenue of about $2.2 billion in 2013, with service offerings include drilling, hydraulic fracturing, oilfield rentals, rig relocation, and fluid handling and disposal.

Chesapeake Oilfield Services is well positioned to succeed as a stand-alone company, the parent firm said in a news release.

"COS is an outstanding business with a talented management team that we believe will offer Chesapeake and its shareholders enhanced return opportunities as a stand-alone company. It has provided, and will continue to provide, superior service to Chesapeake's upstream business...A separation of COS is aligned with our strategies of financial discipline and profitable and efficient growth from captured resources," Chesapeake Energy Chief Executive Doug Lawler said in the statement.

The separation of Chesapeake Oilfield Services from Chesapeake Energy will allow the company to further capitalize on its expertise and capture additional third-party work, COS Chief Executive Jerry Winchester said in the same statement.

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